‘Toothless’ council watchdog silent for six years amid concerns over transparency and resourcing
A key body set up to probe corruption and misconduct in local councils has not made public any of its investigations for six years. Here’s why.
Victoria
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Victoria’s local government watchdog has been branded a “toothless tiger’’ amid concerns it lacks the power, staff and funding to name and shame those guilty of unethical behaviour at the state’s 79 councils.
The Herald Sun can reveal the Local Government Inspectorate – which probes corruption and misconduct in local councils – has not made public any of its investigations for the past six years.
And in a further blow to accountability, the inspectorate has not produced its last two annual reports – the last published one was for 2021-22.
That means that for the past three years it is not known how many council complaints, completed investigations and any subsequent action have been taken by the organisation.
Critics said the inaction meant the sector escaped scrutiny and lacked transparency.
A legislative hitch has prevented the organisation from publishing reports of its investigations, head of the agency, Chief Municipal Inspector Michael Stefanovic, has said.
The Local Government Act of 2020 did not allow for investigations to be made public until it was amended last year.
The last published investigation into a council was in 2019 when the inspectorate examined the operations of machinery depots at Yarriambiack Shire in the state’s west.
Mr Stefanovic told the Herald Sun that the inspectorate, like some other government agencies, was not required to publish an annual report.
“We have published annual reports previously, where capacity has permitted,’’ he said.
Data about its investigations will be published in a combined annual report later this year, for the past two financial years, he said.
But details about past cases are unlikely to be revealed in the joint report.
Several councillors have told the Herald Sun of their lack of confidence in the inspectorate’s ability to name and shame misconduct in the local government sector.
The state government’s funding of the independent agency has nosedived by 36 per cent in five years. The agency’s annual budget has dropped from $2.59m in 2020-21 to $1.66m this financial year.
And its current staffing level is the full-time equivalent of 9.5 employees, but has four vacancies it can’t fill “due to budget constraints’’, the inspectorate said.
Leading local government lawyer Tony Raunic, managing partner at Hunt & Hunt, said the lack of scrutiny and funding was “preposterous’’.
“It is incumbent on the state government to fix this with appropriate resourcing.
“It’s simply not acceptable that an oversight organisation like the Local Government Inspectorate isn’t armed with either the resources to regularly publish the detail and outcome of investigations into allegations of misconduct or inappropriate behaviour in the local government sector.
“The LGI’s role is not just to investigate but to make public their findings to both inform and guide the sector and to act as a deterrent to those who might be contemplating doing the wrong thing.
“IBAC and the Victorian Ombudsman are resourced to publish regular reports on their investigations. LGI performs a related oversight role and should resourced similarly to those other bodies.’’
The inspectorate was heavily criticised over its five-year investigation into Hepburn Shire
Council’s involvement with the controversial Rex Theatre redevelopment in Daylesford. It said it found insufficient evidence of disciplinary breaches or criminal offences.
“The LGI will not be taking any further action in respect of the investigation. Nor will the LGI be publishing any report,’’ it said in a statement.
Mr Stefanovic told the Herald Sun: “As we did not have the power to table reports in parliament, we are unable to publish the report.’’
Opposition spokeswoman for local government Bev McArthur said the Rex project resulted in a nearly $6m loss of public money for the shire.
“Despite spanning several years, the LGI concluded without a published report, raising serious concerns about the LGI’s effectiveness. It’s no wonder those within local government tell me the LGI is a toothless tiger.’’
“The LGI appears to be undertaking very few investigations, and those they do conduct fail to pass on vital information either to councils or to the public.’’
A spokesman for Local Government Minister Nick Staikos said that as an independent integrity body, publication of the inspectorate’s annual reports was “a matter for them’’.
“We will continue to work with the LGI to ensure that it can keep delivering its important functions.’’
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Originally published as ‘Toothless’ council watchdog silent for six years amid concerns over transparency and resourcing